Fitch Cuts Rating for Burger King on Buyout Deal

Fitch Ratings has lowered its issuer default and outstanding debt ratings for Burger King Holdings Inc., saying the company's debt is likely to increase once the fast-food chain is sold to a private equity firm.

Investment firm 3G Capital has agreed to buy Burger King for $3.26 billion and assume $753.7 million of secured bank debt. Burger King's board has unanimously approved the offer.

Fitch said there's a likelihood that debt will increase considerably to finance the deal.

The ratings firm cut Burger King's issuer default rating to "B+" from "BB," and affirmed its rating on the company's secured bank facility at "BB+."

Fitch Ratings has lowered its issuer default and outstanding debt ratings for Burger King Holdings Inc., saying the company's debt is likely to increase once the fast-food chain is sold to a private equity firm.
Investment firm 3G Capital has agreed to buy Burger King for...